PUBLISHED DATE: 2025-08-14 03:20:48
Open Banking Overview
Open banking is the system of allowing access and control of consumer banking and financial accounts through third-party applications.
It has been estimated that by September 2023, 60% of the U.K. population will be using open banking.
Global Overview
- United States
- Canada
- Brazil
- Europe
- Mexico
- Colombia
- India
- Chile
- Australia & New Zealand
- South Africa
- Hong Kong
- Malaysia
- Thailand
- Indonesia & the Philippines
- Saudi Arabia
- Nigeria
- Israel
Regional Developments
Europe
The region is expected to take the next steps to fully implement open finance by 2024, following a series of public consultations by the EU Commission, the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA). The review of the Payment Services Directive 2 (PSD2) is ongoing.
India
India is advancing with its account aggregation framework and is looking to link its instant payment system, UPI, with Singapore’s PayNow. The country expects increased global engagement following the recent launch of Indiastack Global.
Over the past five to ten years, there has been a structural and mindset shift within financial institutions to open their ecosystems to the outside world. The emergence of fintechs has disrupted the marketplace, as these companies have found ways to accelerate traditional banking processes that were previously seen as cumbersome and time-consuming.
Key Use Cases of Open Banking
These use cases demonstrate where the adoption of open-banking standards has revolutionized the customer experience, reduced servicing time, and delivered significant cost savings to banks:
- Identity Verification
- Bank Account Verification
- Credit Check for Lending
- Income Verification Check for Lending
- The ability to verify income in real-time using open banking data has enabled lenders to make faster, more accurate lending decisions, reducing the risk of fraud and improving the customer experience.
- Wealth Management
- Wealth management platforms can aggregate data from multiple accounts, enabling advisors and clients to get a holistic view of their assets and make more informed investment decisions.
- Personal Financial Management
- Access to real-time account data allows consumers to better manage their finances, track spending, set budgets, and achieve their financial goals using digital tools and apps.
- Banking as a Service (BaaS)
- Buy Now Pay Later (BNPL)
- Business Lending: Instant Invoice Financing
Embedded finance and BaaS are innovative ways of utilizing APIs. They enable customer and agent interaction with financial applications on the front end, facilitating communication with the banking infrastructure.
Our Proven Experience: A Client Success Story
Pankaj Chhabra
Yun Zheng
Publicis Sapient
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